The holding company and corporate control

1. Research subject and objectives This study focuses on an economic institution, the large industrial holding company, which continues to hold a prominent if not a strategic position in the resource allocation process in many industrialised market econom

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NIJENRODE STUDIES IN ECONOMICS

Volume 3

Advisory Board

Professor R. E. Caves, Harvard University, Cambridge (Mass.), U.S.A. Professor K. D. George, University College, Cardiff, United Kingdom Professor E. Heusz, University of Marburg, West Germany. Professor H. W. Lambers, Erasmus University, Rotterdam, The Netherlands Professor W. G. Shepherd, University of Michigan, Ann Arbor, Michigan, U.S.A. Professor T. Wilson, University of Glasgow, Glasgow, United Kingdom

Board of Editors

Professor A. P. Jacquemin, University of Louvain, Belgium Professor H. W. de Jong, University of Amsterdam, The Netherlands L. Prins, Nijenrode, Instituut voor Bedrijfskunde, Breukelen, The Netherlands

The holding company and corporate control

Herman Daems European Institute for Advanced Studies in Management and UFSAL

c:Jvfartinus cfJVijhoff Social Sciences Division CLeiden IGfJoston 1978

ISBN-13: 978-1-4613-4058-4 001: 10.1007/978-1-4613-4056-0

e-ISBN-13: 978-1-4613-4056-0

© 1977 by H. E. Stenfert Kroese B.V. Leiden, the Netherlands. Softcover reprint of the hardcover 1st edition 1977

No part of this book may be reproduced in any form, by print, photoprint, microfilm or any other means, without written permission from the publisher.

to Marielle

ACKNOWLEDGMENTS

Writing a foreword for a book, a task which implies that the writer's job is finished and the reader's about to begin, is a very pleasant one and an excellent opportunity to acknowledge the people and institutions who have contributed to my research and thinking over the years. First of all I would like to thank Professor Herman van der Wee of K.U. Leuven who, besides conceiving the original idea for this work, has consulted me all along. He became a very good friend and counsellor. I also owe a special word of gratitude to Professor Alfred D. Chandler Jr. of Harvard University. He not only taught me everything I know about the modern business institution but also gave me generous opportunities to pursue my research interests at Harvard. Jacqueline Corluy-Janssen deserves additional credit for her efficient support in collecting, sorting and re-calculating the original data banks and for repeatedly helping me to meet deadline crises. It was Professor Jan Lindemans, President of UFSAL in Brussels, who kindly allowed me to take time off from my teaching duties to finish this research and start a new project. And I have to thank Professors Alexis Jacquemin of UCL and John van Waterschoot of K. U. Leuven for their sincere interest in my work and for their friendly encouragement. Institutions as well as people have contributed to this research. The list is long so I will mention only two that have been particularly helpful. The Harvard Graduate School of Business Administration repeatedly offered me fellowships and grants and provided an outstanding intellectual environment in Cambridge from which I benefitted enormously during my long stays there. The European Institute for Advanced Studies in Management in Brussels has been a crucial aid in shaping my research. It a